#AskBP 096: What Are Cap Rates and How Are They Calculated?

Expertise: Landlording & Rental Properties, Personal Development, Real Estate News & Commentary, Business Management, Flipping Houses, Mortgages & Creative Financing, Real Estate Deal Analysis & Advice, Real Estate Wholesaling, Personal Finance, Real Estate Marketing, AskBP, Real Estate Investing Basics
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What Are Cap Rates and How Are They Calculated?

Capitalization rates are an important tool that investors use to value income property, but many new investors can feel uncomfortable with the complexities associated with calculating them. In this episode of the #AskBP Podcast, Scott Trench delves into what cap rates are, how they can be calculated, and how to use them in evaluating income property.

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Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He is a nationally recognized leader in the real estate education space and has tau...
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    Bobby Eastman from Dallas, Texas
    Replied about 5 years ago
    Thanks for the explanation man. It was helpful.
    Paul Gonzales Rental Property Investor from San Antonio, TX
    Replied about 5 years ago
    I totally agree with Bobby, this was really helpful. I may have to go over this video several times. Being a newbie and all. Peace
    Todd Linton
    Replied about 5 years ago
    Thanks for the KISS approach. Have know the formula for some time but that is the easiest explaination I have ever heard.
    Albert Strong from Fairfax Station, Virginia
    Replied over 4 years ago
    excellent. well organized and clear. thank you
    Tek Chai from Podunk, Washington
    Replied over 4 years ago
    Thanks Scott for your definition of Cap Rate.
    James Sarantinos from Los Angeles, California
    Replied almost 4 years ago
    thanks for this, Nice and simple explanation